In 2006, Ford Motor Company Announced It Would Severely Cut

question 99

Multiple Choice

In 2006, Ford Motor Company announced it would severely cut back automobile production. For parts companies supplying Ford Motor, this represented a(n)

• A) weakness.
• B) opportunity.
• C) strength.
• D) threat.
• E) strategic plan.

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Definitions:

Raw Materials

Basic substances in their natural, modified, or semi-processed states used as inputs for manufacturing finished goods.

Labour

The effort exerted by humans, encompassing both physical and mental activities, in the creation of goods and services.

Cost Structure

The composition of a company's costs, including fixed and variable costs, that determines how it spends money on its operations.

Minimum Quantities

The smallest amount or number of items that must be purchased, produced, or kept in inventory.